attorney general of the state of new york bureau of ... · consumers’ credit-worthiness....

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ATTORNEY GENERAL OF THE STATE OF NEW YORK BUREAU OF CONSUMER FRAUDS & PROTECTION __________________________________________________ In the Matter of the Investigation by Eric T. Schneiderman, Attorney General of the State of New York, of Experian Information Solutions, Inc.; Equifax Information Services, LLC; and TransUnion LLC, Respondents.

__________________________________________________

SETTLEMENT AGREEMENT

The Office of the Attorney General of the State of New York (“NYAG”) conducted an

investigation, pursuant to New York State Executive Law § 63(12), of the practices of the three

national credit reporting agencies, Experian Information Solutions, Inc. (“Experian”); Equifax

Information Services, LLC (“Equifax”); and TransUnion LLC (“TransUnion”) (collectively, the

“CRAs”) concerning, among other things, (a) the accuracy of consumer credit information

maintained by the CRAs; (b) the CRAs’ practices regarding investigation of consumer disputes

of alleged inaccuracies in credit reports; and (c) the reporting of medical debt.

The NYAG, Experian, Equifax, and TransUnion are collectively referred to herein as

“the parties” to this Settlement Agreement (“Agreement”).

NYAG’s BACKGROUND STATEMENT

1. In the U.S., there are three nationwide CRAs: Experian, Equifax, and TransUnion.

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The CRAs maintain consumer credit information on approximately 200 million consumers.1 The

credit information is compiled by the CRAs via voluntary submissions from “data furnishers”

(“furnishers”) such as creditors and collection agencies. There are about 30,000 data furnishers

that provide the CRAs with consumer credit information.2 The CRAs maintain five types of

consumer information: (1) identifying information such as name, address, social security

number, and birthdate; (2) current and past credit account information, including information

about mortgages, car loans, and credit cards; (3) public records such as bankruptcies,

foreclosures, civil judgments, and tax liens; (4) collection accounts (i.e., debts that have been

turned over to a collection agency); and (5) inquiries (requests to access a consumer credit

report).3 The CRAs then provide credit reports to creditors who use the reports to assess

consumers’ credit-worthiness. Creditors use credit reports to generate numerical ratings, called

“credit scores,” that are used in determining whether to grant credit and in determining the

interest rate or other terms of credit. Other users of credit reports include, but are not limited to,

insurance providers, employers, and landlords.

2. Creditors often review credit reports in making decisions regarding the extension

of credit. Credit reports can affect whether a consumer is able to borrow money for higher

education or to make a purchase such as a home or car, or to obtain a credit card, and can affect

the consumer’s cost of borrowing. In addition, credit reports can affect how much a consumer

pays for insurance; whether a consumer can rent an apartment; and may be adversely used by

1 Federal Trade Commission, Report to Congress Under Section 319 of the Fair and Accurate Credit Transactions Act of 2003 (“FTC Report”), at 2 (Dec. 2012). 2 See id. 3 See id. at 3.

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employers in the hiring context. Accordingly, errors in credit reports can negatively impact

consumers.

3. The Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq., requires each

of the CRAs to provide consumers with a free copy of the consumer’s credit report once every

12 months. This enables consumers to periodically review their credit report for errors. The

three CRAs maintain a central website, www.AnnualCreditReport.com, and also each have a

toll-free telephone number and a mailing address through which consumers can order their free

annual report. According to a 2011 report by the Consumer Financial Protection Bureau

(“CFPB”), each year approximately 15.9 million consumers obtain a free annual file disclosure

through www.AnnualCreditReport.com.4 Increased awareness of AnnualCreditReport.com and

consumers’ right to obtain free annual file disclosures may increase the ability of consumers to

identify potential errors in their credit reports.

4. Consumers who identify potential errors in their credit report may initiate a

dispute with the CRAs. Consumers initiate disputes by submitting a request by mail, by

telephone, or online via the CRAs’ individual websites (or by first visiting

www.AnnualCreditReport.com, requesting a free annual disclosure, and then being redirected to

the CRAs’ individual websites to initiate a dispute). Consumers who file disputes may submit

documents such as court orders, letters from creditors, or other documents in support of their

disputes.

4 Consumer Financial Protection Bureau (“CFPB”), The Impact of Differences Between Consumer- and Creditor-Purchased Credit Scores: A Report to Congress, at 9 (July 19, 2011).

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5. In a 2012 study of credit report accuracy,5 the Federal Trade Commission

(“FTC”) determined that 26% percent of study participants identified at least one potentially

material error in their credit reports, and that 13% of study participants experienced a change in

their credit score as a result of modifications to their credit report after a dispute.6 These findings

suggest that millions of consumers have potentially material errors on their credit reports.

However, the FTC study found that only 2.2% of the credit reports reviewed had errors that

when corrected resulted in a material change in credit score—i.e., a “credit tier increase.”7

6. Credit report errors generally arise due to incomplete or incorrect information

provided by furnishers or consumers; fraud and identity theft; and, in some cases, through the

CRAs’ processes of matching information provided by furnishers to an individual consumer’s

credit files. For example, when consumers have similar names and share other identifying

information such as an address, some or all of the credit information of one consumer can

become “mixed” into the file of another consumer. Consumers may not be aware that their

credit information has become mixed with another person’s credit information.

7. The CRAs employ sophisticated algorithms for matching the data submitted by

furnishers to the credit files of individual consumers. The matching systems use various

combinations of identifying information such as name, address, and social security number to

match the credit data with an individual consumer’s credit files. In order to take into account 5 The references in this Agreement to third-party reports, studies, and articles are intended to illustrate issues that currently surround the credit reporting industry; however, nothing contained herein shall be construed to constitute an admission by the CRAs with respect to the accuracy of such reports, studies, or articles. 6 FTC Report, at i. 7 FTC Report, at 47. The CRAs point to a 2011 study by the Policy and Economic Research Council (and funded by CDIA, the CRAs’ industry association), which found that approximately 0.5% of credit reports had errors that, when corrected, resulted in a credit tier increase.

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minor errors and omissions made by consumers and data furnishers, the matching systems do not

require exact matches for all of the various identifying items. Thus, a CRA’s matching system

might, for example, match reported credit information to a particular consumer even where the

reported social security number does not match all nine digits of the consumer’s social security

number, where several other identifying items are an exact match. The flexibility in the CRAs’

matching system can benefit consumers by ensuring that positive credit information is not

omitted from a consumer’s file based on minor omissions or errors by the consumer or creditor

in recording the consumer’s identifying information. On the other hand, the flexibility in the

matching system may, in certain circumstances, lead a CRA to erroneously assign the credit

information of one person to another person’s credit file, creating a “mixed file.”

8. The CRAs’ practices related to compiling and distributing consumer credit

information are governed under federal law by the FCRA, and by relevant state laws including

the New York General Business Law (“GBL”) Article 25, Section 380 et seq. The FCRA and

GBL Article 25 require the CRAs to maintain reasonable procedures to assure maximum

possible accuracy of consumer credit information. 15 U.S.C. § 1681e; GBL § 380-j(e). The

FCRA and GBL Article 25 also establish that consumers may dispute information in their credit

report. 15 U.S.C. § 1681i; see also GBL § 380-f. When a dispute is made, the CRAs must

conduct a reasonable reinvestigation of disputed information. In conducting a reinvestigation of

disputed information, CRAs are required to “review and consider all relevant information

submitted by the consumer” with respect to such disputed information. 15 U.S.C. § 1681i(a)(4).

If, after a reinvestigation, the information is found to be inaccurate, incomplete or cannot be

verified, the CRA must promptly delete or modify the information as appropriate. 15 U.S.C.

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§1681i(a)(5); GBL § 380-f(b).

9. The CRAs’ reinvestigation process for disputes concerning credit accounts

generally entails submitting the dispute to the furnisher of the disputed information using a

shared, computerized system called e-OSCAR, unless the CRA determines that the information

provided by the consumer is sufficient to enable the CRA to update the consumer’s file without

submitting the dispute to the furnisher. To varying degrees among the CRAs over time, in some

instances certain documents submitted by consumers may not have been reviewed by a CRA

employee with sufficient discretion to resolve the dispute. In such cases, as well as cases in

which a CRA employee reviews the supporting documents and determines that the information

provided is insufficient to enable the CRA to update the consumer’s file, the CRAs submit a

“code” to the furnisher designating a general category that describes the dispute, sometimes

accompanied by a narrative explaining the dispute, and any supporting documents provided by

the consumer. The furnisher then has an independent obligation to review the dispute, and the

opportunity to review any files uniquely in the furnisher’s possession relevant to the dispute, and

to report its findings to the CRAs.

10. The NYAG has received consumer complaints regarding errors in credit reports

and consumers’ difficulty in rectifying errors through the CRAs’ dispute process, including

addressing errors resulting from mixed files.

11. In addition to concerns about credit report errors, the NYAG is concerned about

the effect of medical debt on consumers’ credit scores. Medical debt, which refers to debt owed

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due to unpaid medical costs, comprises more than half of all collection items on credit reports.8

Approximately 20% of credit reports have at least one medical collection debt.9 Medical debt

differs from other types of consumer debt, such as credit cards or auto loans, in several ways.

First, medical debt may result from services that are involuntary, unplanned and unpredictable,

and for which prices are rarely provided in advance.10 In addition, some medical debt results

from disputes or delays in insurance coverage of particular bills. As a result, medical debt

collection items on credit reports may not be accurate reflections of consumers’

creditworthiness.11 In recognition of this, at least one leading credit score provider has changed

its credit score model to de-emphasize the impact of medical debt in credit scores.12 However,

these changes affect only the most recent version of the credit scoring model, which has not yet

been adopted by the majority of credit providers, and so it does not cover all consumers in credit-

seeking transactions. Accordingly, many consumers continue to suffer a negative impact on

their credit scores as a result of medical debt.

12. The CRAs fully cooperated in the NYAG’s investigation and produced a

substantial volume of documents and information to the NYAG. The NYAG and the CRAs also

met on multiple occasions to discuss the concerns raised by the NYAG.

13. The CRAs deny any wrongdoing and have voluntarily agreed to undertake the

8 CFPB, Consumer Credit Reports: A Study of Medical and Non-Medical Collections, at 4-5 (Dec. 2014). 9 Id. at 5. 10 Chi Chi Wu, Strong Medicine Needed: What the CFPB Should Do To Protect Consumers from Unfair Collection and Reporting of Medical Debt, National Consumer Law Center, at 2 (Sept. 2014). 11 See CFPB, Data Point: Medical Debt and Credit Scores, at 5 (May 2014). See also id. at 4. 12 CFPB, Consumer Credit Reports: A Study of Medical and Non-Medical Collections, at 52 (Dec. 2014).

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prospective relief set forth in Sections III and IV of this Agreement.

PROSPECTIVE RELIEF

WHEREAS, the NYAG is willing to accept the terms of this Agreement and to

discontinue its investigation, and the balance of this Agreement contains the prospective relief

agreed to by the parties; and

WHEREAS, the parties each believe the obligations imposed by this Agreement

represent the most fair and most efficient method for resolving the matters raised in the NYAG’s

investigation;

IT IS HEREBY UNDERSTOOD AND AGREED, by and between the parties that:

I. DEFINITIONS

1. For purposes of this Agreement, the CRAs and the NYAG adopt the definitions

set forth in the FCRA, 15 U.S.C. § 1681a, as that provision shall be modified or amended in the

future. In addition, the following terms not defined in the FCRA but used herein shall have the

following meanings for purposes of this Agreement.

a. “ACDV” shall mean Automated Credit Dispute Verification, an

automated dispute form that is initiated by a CRA on behalf of a consumer and routed to the

appropriate furnisher for review and update or verification.

b. “Affiliate” shall mean an entity that directly or indirectly through one or

more intermediaries, controls or is controlled by, or is under common control with, any of the

CRAs.

c. “AUD” shall mean Automated Universal Data, an automated form used

for out-of-cycle credit history updates that is initiated by the furnisher.

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d. “Collection Furnishers” shall mean collection agencies or debt purchasers

that furnish data to any of the CRAs.

e. “Completion Date” shall mean three (3) years and ninety (90) days

following the Effective Date.

f. “Creditor Classification Codes” shall mean the list of Metro 213 codes that

identify the type of business that the Original Creditor is engaged in (e.g., retail, medical/health

care, insurance, educational, banking, etc.).

g. “e-OSCAR” shall mean the “Online Solution for Complete and Accurate

Reporting,” a browser-based system for conveying consumer disputes to furnishers and for

furnishers to convey the results of their reinvestigations to the CRAs, designed in part in

furtherance of compliance with the FCRA, 15 U.S.C. § 1681i(a)(5)(D).

h. “Effective Date” shall mean the date on which this Agreement is signed

and fully executed by all parties hereto.

i. “Illegal Lender” shall mean any non-bank entity that is subject to section

340 of the New York Banking Law and that provides personal loans that are in violation of the

requirements of: (a) N.Y. General Obligations Law § 5-501; or (b) N.Y. Banking Law § 14-a.

j. “Implementation Schedule” shall mean the timeframe for implementation

13 “Metro 2” refers to one of two standard file formats used by furnishers to submit data to the CRAs. The other standard file format is referred to as “Metro 1.” The Metro 1 format was first introduced in the mid-1970s. The Metro 2 format was developed by the Consumer Data Industry Association (“CDIA”) in 1997 to provide greater accuracy of consumer credit information by enabling furnishers to provide more data fields that make it “more likely that CRAs will match the reported item to the correct consumer’s file.” Federal Trade Commission, Report to Congress on the Fair Credit Reporting Act Dispute Process, at 10 (Aug. 2006). Although Metro 2 is the preferred format, many furnishers still utilize the Metro 1 format.

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of the substantive terms of this Agreement, as further set forth in Section II.

k. “National Credit Reporting Working Group” or “Working Group” shall

mean a group of data experts from each CRA who will participate in regular meetings to identify

and share best practices concerning issues related to data quality and data accuracy including, but

not limited to, monitoring of furnishers and the dispute process, as discussed more fully in

Section III.

l. “Original Creditor” shall mean the name of the original credit grantor as

reflected in the K1 Segment in Metro 2 and shall be construed consistent with the Credit

Reporting Resource Guide.

m. “Supporting Dispute Documentation” shall mean a document submitted by

a consumer who has initiated a dispute, other than a document created by the consumer or the

consumer’s own statement of dispute, that has some objective indication that a party with direct

involvement or authority regarding the disputed item of information in the consumer’s file has

played a role in creating the document.

2. All other terms defined elsewhere in this Agreement are so defined, and shall

have such meanings as set forth where defined, for purposes of this Agreement, including the

following terms: Confirmed Mixed File; Death Notice; Disputed Deceased Indicator; and

Repeat Dispute.

II. IMPLEMENTATION SCHEDULE

The CRAs have provided the NYAG with an Implementation Schedule that sets forth the

expected schedule for implementation of each of the substantive policies, practices, and

procedures set forthin Section III. This Schedule is attached as Exhibit A hereto. To the extent

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there are any differences between the descriptions of the substantive policies, practices, and

procedures set forth in Section III of this Agreement and those set forth in the Implementation

Schedule, the provisions of Section III of this Agreement shall control.

The Implementation Schedule sets forth three phases of implementation, including

scheduled dates by which each phase will be completed, as follows:

1. Phase 1: The CRAs shall complete the tasks in Phase 1 within six (6) months of the Effective Date.

2. Phase 2: The CRAs shall complete the tasks in Phase 2 within eighteen (18) months of the Effective Date.

3. Phase 3: The CRAs shall complete the tasks in Phase 3 by the Completion Date.

Unless otherwise noted in the Implementation Schedule, the policies, practices, and procedures

set forth in Section III shall all be implemented no later than the Completion Date.

III. AFFIRMATIVE OBLIGATIONS AND PROHIBITIONS

A. Data Accuracy and Quality

1. Reporting of Collection Data

a. The CRAs shall continue to require Collection Furnishers to furnish the

name of the Original Creditor and the Creditor Classification Code associated with each account

or item reported. The CRAs shall revise training materials and adopt policies and procedures to

notify and instruct Collection Furnishers that the name of the Original Creditor and the Creditor

Classification Codes are mandatory reporting requirements, and the CRAs shall reject data that is

not provided with this information.

b. The CRAs shall implement a process designed to identify Collection

Furnishers who misreport or misuse the Creditor Classification Codes on a recurring basis, such

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as, for example, by using a default value. The CRAs shall take corrective action against

Collection Furnishers identified pursuant to this provision, including, but not limited to, working

with a Collection Furnisher to remediate the problem, suppressing certain of the Collection

Furnisher’s data, and refusing to accept certain information from the Collection Furnisher.

c. The CRAs shall prohibit Collection Furnishers from reporting debt that

did not arise from any contract or agreement to pay (including, but not limited to, certain fines,

tickets, and other assessments).

d. The CRAs shall implement a process designed to remove from the CRAs’

respective credit reporting databases any existing data reported by Collection Furnishers relating

to the collection of debt that did not arise from a contract or agreement to pay. Such efforts shall

include, but are not limited to, sharing best practices for key words and screening procedures

designed to identify debt that did not arise from any contract or agreement to pay.

e. The CRAs shall require Collection Furnishers to regularly reconcile data

relating to accounts in collection that have not been paid in full. This regular reconciliation will

be accomplished, in part, by periodic removal or suppression of all collection accounts that have

not been updated by the Collection Furnisher within the last six months. In addition, the CRAs

shall revise training materials and instruct new and existing Collection Furnishers on accurately

reporting and deleting accounts that are sold, transferred, or no longer managed by the reporting

entity.

2. Retire Metro 1 Reporting Format

Not later than ninety (90) days following the Effective Date, the CRAs shall announce

the full retirement of the Metro 1 data reporting format. Thereafter, at the end of a reasonable

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notice period specified in the Implementation Schedule that provides furnishers with sufficient

time to undertake all steps necessary to migrate to the Metro 2 data reporting format, the CRAs

shall no longer accept any data from furnishers utilizing the Metro 1 data reporting format.

Commencing with the announcement of the retirement of the Metro 1 data reporting format, the

CRAs shall use commercially reasonable efforts to assist furnishers in migrating to the Metro 2

data reporting format, with the intent that such migrations will be done on a rolling basis.

3. Medical Debt Collections

a. To allow appropriate time for insurance remediation and clarity on what a

consumer’s individual payment obligation is for a medical account, the CRAs shall prevent the

reporting and display of medical debt identified and furnished by Collection Furnishers when the

date of the first delinquency is less than one hundred and eighty (180) days prior to the date that

the account is reported to the CRAs.

b. The CRAs shall instruct Collection Furnishers on the use of the Metro 2

special comment codes of “BP” for debt identified as “paid by insurance” and “AB” for debt

identified as “being paid by insurance” and instruct Collection Furnishers to remove or suppress

medical accounts reported as “paid by insurance” or “being paid by insurance” if such accounts

were in fact paid in full by the consumer’s insurance carrier and were not the obligation of the

consumer.

c. The CRAs shall implement a process designed to remove or suppress

known medical collections furnished by Collection Furnishers from files within the CRAs’

respective credit reporting databases when such debt is reported either as having been paid in full

by insurance or as being paid by insurance.

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4. Authorized User Accounts

a. The CRAs shall prohibit furnishers from reporting authorized users

without a date of birth (using month and year) on new accounts and reject data that does not

comply with this requirement.

b. The CRAs shall inform furnishers of the mandatory reporting requirement

relating to additions of authorized users on newly opened accounts and to reject such data that is

not provided with a date of birth (using month and year).

5. Illegal Lenders

a. As part of their onboarding policies and procedures when vetting new

furnishers, the CRAs shall implement a process designed to identify furnisher applicants that

operate as Illegal Lenders to New York residents and to reject such applicants. Specifically, the

NYAG will provide the CRAs with a list of Illegal Lenders after either (i) notifying Illegal

Lenders and/or (ii) making the list of Illegal Lenders publicly available. The NYAG may update

the list of Illegal Lenders as necessary. The NYAG shall include as much identifying

information as possible regarding each Illegal Lender included in the List (such as corporate

name, place of incorporation, and corporate address) to permit the CRAs to effectively identify

each Illegal Lender.

b. The CRAs shall implement a process designed to suppress from the

CRAs’ respective credit reporting databases any existing data for New York residents where the

Original Creditor is an Illegal Lender that appears on the list referenced in paragraph 5(a).

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6. Minimum Identification Elements on Trade and Collection Data

To expand the CRAs’ capabilities to match new credit data to the file of the appropriate

consumer, the Working Group shall establish minimum standards that each CRA will adopt

regarding the types of indicative information that furnishers of newly opened trade and collection

data shall report to the CRAs in order for the CRAs to accept their data. In establishing these

standards, the Working Group shall share and analyze data to help identify trends in furnisher

reporting and/or consumer disputes that relate to the lack of a particular type of indicative

information in order to determine key issues with particular groups of furnishers or reporting

practices.

7. Accuracy of Public Record Data

To expand the maximum possible accuracy of public record data, the Working Group

shall establish standards that each CRA will adopt regarding the collection of public record data.

In establishing these standards, the Working Group shall consider: (i) the particular practices of

the ultimate data source (e.g., the specific courthouse), including how the public record

information is filed and its availability and accessibility; and (ii) whether information relating to

the satisfaction of judgments and/or other updates are available on a reasonably timely basis

from a given public record data source.

B. The Dispute Process

1. Initiating a Dispute

a. Regardless of whether a dispute is initiated online, by phone, or by mail,

the CRAs shall not refuse to accept the disputes solely because the consumer (a) has not recently

received a credit report or file disclosure from the CRA, or (b) does not have or has not supplied

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an identification number associated with a credit report or file disclosure from the CRA.

b. The CRAs shall eliminate any policies or practices that require a consumer

to obtain, or that create the impression that a consumer must obtain, a current report or

identification number before disputing the completeness or accuracy of information in his or her

file.

2. Repeat Disputes

Except for any dispute previously initiated by a consumer through the use of a credit

repair firm, the CRAs shall not deny New York consumers the right to initiate one additional

dispute solely on the grounds that the consumer previously initiated a dispute of the same item of

credit information, where the previous dispute was filed during the three-year period prior to the

Completion Date and the consumer submits Supporting Dispute Documentation with the new

dispute (a “Repeat Dispute”). The obligations of this Section III.B.2 shall apply only with

respect to one Repeat Dispute, and the CRAs shall have no obligations under this Section III.B.2

with respect to any additional Repeat Disputes.

3. Dispute Information Sharing Among CRAs

The CRAs shall implement an automated process to share with each other the following

dispute outcomes for certain consumer disputes processed outside of e-OSCAR.

a. Deceased Indicators

The CRAs shall implement an automated process to share relevant information about

consumers who dispute as inaccurate a tradeline for which the furnisher reports a deceased

indicator (“Disputed Deceased Indicator”) and for which a CRA has investigated and determined

to cease reporting such Disputed Deceased Indicator. The CRAs shall develop and share best

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practices for identifying and preventing inaccurate reporting of Disputed Deceased Indicators,

which shall include, but are not limited to, the following actions:

i. Upon the receipt of any shared Disputed Deceased Indicator, the

receiving CRAs shall: investigate whether the Disputed Deceased Indicator is associated with

the affected consumer in the CRA’s credit database; take reasonable steps to avoid reporting any

Disputed Deceased Indicator deemed inaccurate; and take other appropriate action to prevent the

Disputed Deceased Indicator deemed inaccurate from reappearing on the affected consumer’s

credit report, including reporting the inaccurate Disputed Deceased Indicator to the furnisher.

ii. The CRAs shall revise training materials and instruct new and

existing furnishers on Metro 2 reporting standards for reporting deceased indicators, such that

furnishers: consistently and accurately report deceased indicators only at the consumer level,

and not at the account level; and verify documentation that confirms a consumer’s death before

reporting deceased indicators to the CRAs.

iii. The CRAs shall analyze the CRAs’ shared data on Disputed

Deceased Indicators to identify trends in consumer disputes with respect to deceased indicators

and to determine whether other appropriate actions should be taken to further increase the

maximum possible accuracy of tradelines reported as deceased.

b. Death Notices


consumers on whom a CRA has received appropriate proof of death, including, but not limited

to, death certificates and letters testamentary (each a qualifying “Death Notice”) from the

consumer’s executor, personal representative, or other authorized person representing the

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consumer’s estate. The CRAs shall develop and share best practices for sharing Death Notices

among the CRAs, which shall include, but are not limited to, the following actions:

i. Upon receipt of any shared Death Notice, regardless of whether the

CRAs received the Death Notice independently, the receiving CRAs shall update the credit file

of the affected consumer as if the CRAs had received the Death Notice directly from the

consumer’s executor, personal representative, or other authorized person representing the

consumer’s estate.

ii. As part of the consumer education enhancements in Section

III.C.1, the CRAs shall update their respective websites and cooperate in the creation and

approval of educational material to be included on AnnualCreditReport.com advising consumers

and their executors, personal representatives, and other authorized persons representing their

estates on what documents constitute a valid documentation of death and that Death Notices shall

be shared among the CRAs.

iii. The CRAs shall create a common statement to be included in their

written communications to persons submitting Death Notices to inform them that the relevant

information about consumers identified as deceased shall be shared among the CRAs.

c. Mixed File Information


consumers who dispute information contained in their credit reports when a CRA confirms that a

consumer’s credit file information was mixed with that of another identified consumer (hereafter

referred to as a “Confirmed Mixed File”). The CRAs shall develop and share best practices for

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sharing Confirmed Mixed File information among the CRAs, which shall include, but are not

limited to, the following actions:

i. Upon receipt of notice of a Confirmed Mixed File from another

CRA, the receiving CRAs shall: (a) conduct a reasonable investigation into whether the disputed

information is associated with the affected consumer in the CRA’s credit database; and (b) take

reasonable steps to avoid reporting any indicative information or tradelines deemed inaccurate

because they belong to another identified consumer.

ii. The CRAs shall analyze their shared data on Confirmed Mixed

File information and other data concerning the manner of reporting tradelines and indicative

information to determine other appropriate actions, if any, that should be taken to reduce the

incidence of Confirmed Mixed Files.

iii. The CRAs shall develop guidelines and procedures for

communicating with consumers about mixed files and shall create educational content about

mixed files generally, as part of the consumer education enhancements in Sections III.B.7.d and

III.C.1.

4. Improving Notifications to Consumers on Reinvestigation Results

a. Following the CRA’s reinvestigation of a consumer dispute, the CRA

shall provide consumers a notice that contains standardized elements regarding the nature of the

reinvestigation and post-dispute options for the consumer, which notice shall supplement, and

not supplant, any notices the CRAs are currently required by law to provide consumers. Such

standardized elements shall include, but are not limited to, an explanation of:

i. the actions taken by the CRA regarding the consumer’s dispute,

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including, if applicable, contact information for any furnisher involved in responding to the

dispute, a description of the role played by the furnisher in the reinvestigation process, and an

explanation of the furnisher’s certification of compliance that governs the furnisher’s

investigative obligations;

ii. the results of the consumer’s dispute, including, if applicable, the

specific modification or deletion of information that was made to the consumer’s file following

the reinvestigation; and

iii. the consumer’s options if he or she is dissatisfied with the

reinvestigation results, which shall include submitting documents in support of the dispute,

adding a consumer statement to his or her credit file, filing a dispute with the relevant furnishers,

and submitting a complaint against the CRA and/or the relevant furnishers with the CFPB

complaint portal or the consumer’s state attorney general.

b. No less than semi-annually, the CRAs shall evaluate consumer dispute

analytics to determine whether additional standardized communications to consumers are

warranted that would further benefit consumers and improve their satisfaction with dispute

outcomes.

5. Additional Free Annual Credit Report to Consumers Following Reinvestigation

The CRAs shall implement a process by which consumers who initiate a dispute of

information contained in their free annual credit report disclosure are granted the ability to

request one additional free annual credit report disclosure—as authorized by the FCRA, 15

U.S.C. § 1681j(a)—during the twelve-month period following a change to the consumer’s file as

requested by the consumer in the dispute. This additional free annual credit report disclosure

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shall be in addition to and shall not diminish any other right of a consumer to request and obtain

a free credit report disclosure from any of the CRAs.

6. Enhancing e-OSCAR Furnisher Certifications and Terms of Use

a. The CRAs shall review and update the terms of use agreed to by

furnishers using e-OSCAR, as well as the ACDV and AUD certifications made by furnishers

through e-OSCAR, in order to: (i) emphasize compliance with furnishers’ obligations under the

FCRA; (ii) reinforce furnishers’ obligations to review and consider images of documents

submitted by consumers as part of the furnishers’ reinvestigations of consumer disputes; and (iii)

incorporate recent regulatory guidance from the CFPB advising furnishers of their

responsibilities concerning handling and investigating consumer disputes.14 At a minimum, the

furnisher certifications prior to submitting an ACDV or AUD shall be updated using language

substantially similar to the following: “By submitting this ACDV [or AUD, as applicable], you

certify that you have reviewed and considered all associated Images, you have verified the

accuracy of the data in compliance with all legal requirements, and your computer and/or manual

records will be adjusted to reflect any changes noted.”

b. No less than semi-annually, the CRAs shall analyze data on consumer

disputes that is available in e-OSCAR to determine whether other actions, if any, should be taken

to enhance the e-OSCAR system and furnishers’ conduct in processing automated consumer

disputes.

14 See CFPB Bulletin 2013-09 (Sept. 9, 2013) (discussing a furnisher’s obligation to review all relevant information received from a CRA in connection with a consumer dispute); CFPB Bulletin 2014-01 (Feb. 27, 2014) (discussing a furnisher’s obligation to investigate disputed information in a consumer credit report and provide notice of inaccurate information to the CRAs).

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7. Escalated Dispute Handling for Mixed Files, Fraud, and Identity Theft

a. The CRAs shall each implement a process to identify and process disputes

that qualify for escalated handling. The processes implemented shall not discourage call center

personnel or those handling written disputes from escalating disputes or provide the call center

personnel or those handling written disputes with incentives to avoid escalation.

b. Subject to Section III.B.7.c below, the types of complaints that shall

qualify for escalated handling include mixed files, fraud, and identity theft. Escalated handling

shall include the involvement of representatives from specialized groups with substantial

experience processing these types of disputes, who will process the consumer’s dispute through

completion and review any Supporting Dispute Documentation and all relevant information in

the consumer’s credit file to facilitate a reinvestigation of all items disputed by the consumer.

The Working Group shall evaluate consumer dispute analytics to determine whether other types

of consumer disputes warrant escalated handling. In addition, the Working Group shall facilitate

the sharing among the CRAs of best practices relating to escalated handling.

c. Notwithstanding any of the foregoing, the escalated dispute handling

procedures detailed in this Section III.B.7 shall apply only with respect to disputes initiated with

the CRAs pursuant to direct consumer contacts as provided in the FCRA, 15 U.S.C. § 1681i(a),

and the CRAs shall not be required to employ the escalated dispute handling procedures with

respect to disputes initiated by credit repair firms or disputes that the CRAs reasonably determine

to be frivolous or irrelevant.

d. The CRAs shall update their respective websites and cooperate in the

approval and inclusion of educational material to be posted on AnnualCreditReport.com that

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provides information and instruction to consumers who may have disputes regarding their credit

reports which qualify for escalated handling.

8. Review of Supporting Dispute Documentation Submitted by Consumers

a. Subject to Section III.B.8.b below, each CRA shall utilize a process

designed to assure that during a CRA’s reinvestigation of a dispute of any item of information

contained in a consumer’s file, if a consumer submits Supporting Dispute Documentation and the

CRA does not otherwise modify the information in the manner requested by the consumer, the

Supporting Dispute Documentation shall be reviewed by an agent of the CRA with discretion to

make a determination whether to make the change requested by the consumer on the basis of the

Supporting Dispute Documentation.

b. Notwithstanding any of the foregoing, the Supporting Dispute

Documentation review procedures detailed in this Section III.B.8 shall apply only with respect to

disputes initiated with the CRAs pursuant to direct consumer contacts as provided in the FCRA,

15 U.S.C. § 1681i(a), and the CRAs shall not be required to employ the Supporting Dispute

Documentation review procedures with respect to disputes initiated by credit repair firms or

disputes that the CRAs reasonably determine to be frivolous or irrelevant consistent with Section

III.B.2.

C. AnnualCreditReport.com

1. Enhancing AnnualCreditReport.com

a. Link to Each CRA’s Consumer Dispute Website

i. Subject to regulatory approval under the Credit Card

Responsibility Accountability and Disclosure Act of 2009 and accompanying regulation, the

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CRAs shall enhance the consumer experience on AnnualCreditReport.com by prominently

providing hyperlinks leading directly to each CRA’s respective online dispute website and

instructions for consumers on how to initiate a dispute at each of those websites regarding

information disclosed in consumers’ credit reports.

ii. The CRAs shall ensure that the landing website pages

corresponding to the hyperlinks provided to consumers who obtain disclosures on

AnnualCreditReport.com are free from any advertising, marketing offers, or other solicitations.

b. Enhanced Consumer Educational Content

The CRAs shall update their respective websites and cooperate in the approval and

inclusion of consistent educational material on AnnualCreditReport.com to improve consumers’

understanding of their credit reports, the consumer dispute process and the types of helpful

documentation that should be included with the consumer’s dispute, and consumers’ roles in

helping to promote the goal of assuring maximum possible accuracy in consumer credit

reporting. In addition, the CRAs shall enhance consumer education, which shall include, but is

not limited to, taking the following actions.

i. The CRAs shall review and enhance consumer educational content

related to fraud, identity theft, security freezes, data breaches, submission of Death Notices,

consumer disputes of credit report information (including, but not limited to, Disputed Deceased

Indicators), and options for consumers who are dissatisfied with the reinvestigation results.

ii. Representatives from each CRA shall evaluate consumer dispute

analytics to determine whether other issues and credit reporting topics are appropriate to develop

educational content for inclusion on AnnualCreditReport.com and on the CRAs’ respective

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websites.

iii. The CRAs shall provide links on the CRAs’ respective websites

that direct consumers to educational material on AnnualCreditReport.com.

iv. The CRAs shall cooperate in the approval and inclusion of

consistent educational material on AnnualCreditReport.com regarding: (a) how to file a dispute;

(b) the types of Supporting Dispute Documentation most likely to aid the resolution of a

consumer’s dispute; and (c) how to provide Supporting Dispute Documentation to the CRAs.

2. Promoting AnnualCreditReport.com

a. Each CRA shall clearly and conspicuously disclose on the landing page of

its Desktop Website as defined in Section III.C.2.b below that consumers can obtain a free

annual credit report by including a hyperlink that is prominently labeled “Get Your Free Annual

Credit Report” or words of similar import. The hyperlink should be readily visible to a visitor to

the landing webpage without the visitor having to scroll down on the webpage and should link

directly to AnnualCreditReport.com. The hyperlink may appear via a drop-down menu if: (i) the

tab for the drop-down menu is readily visible to a visitor to the landing webpage without the

visitor having to scroll down on the webpage and is labeled “Credit Reports” or words of similar

import; and (ii) the “Get Your Free Annual Credit Report” hyperlink appears first in the drop-

down menu and links directly to AnnualCreditReport.com.

b. The obligations of Section III.C.2.a shall apply only with respect to the

CRA’s full website, meaning the only public version of the CRA’s website that may be accessed

by a desktop computer (“Desktop Website”). The CRAs shall not be required to impose the

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obligations of Section III.C.2.a with respect to their mobile or tablet websites, apps, or other

alternative electronic displays other than their Desktop Websites.

D. Educational Campaign

Over the three (3) years following the Effective Date, the CRAs shall conduct a credit

reporting-themed educational campaign (the “Campaign”) through which they shall create,

distribute, and present messages designed to educate consumers on specific topics relating to

credit reporting (the “Educational Content”) and distribute the Educational Content through

unpaid placements of public service announcements (“PSAs”), internet chats and other online

content, and paid placements in print, radio and television media as specified further below.

1. Topics for Educational Content

a. The Campaign shall address, at a minimum, the following topics: (a) the

consumers’ right to obtain a free annual credit report from each of the CRAs via

AnnualCreditReport.com; (b) the consumers’ right to dispute inaccurate information in their

credit file; and (c) the consumers’ right to submit supporting documentation in support of such

disputes. The Campaign shall cover the topics listed above, but there is no requirement for each

placement to cover all such topics.

b. The Campaign placements shall not be commercial or promotional in

nature.

2. Framework of Campaign

a. Print Media. The Campaign shall include the following print component:

i. During all four quarters of the first year and during the first and

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third quarters of the second and third years of the Campaign, the CRAs shall place PSAs in both

English and Spanish language newspapers in the State of New York. Although the CRAs cannot

guarantee a specific number of placements, the CRAs represent that, in their experience, a

distribution service ordinarily would be able to place PSAs in publications that claim a

cumulative total circulation of more than one million people.

ii. During each quarter of the second year of the Campaign, the CRAs

shall purchase quarter-page print advertisements containing the Educational Content. The

quarterly placements need not be in all the publications listed in Exhibit B, but the CRAs shall

ensure that the Educational Content runs at least two (2) times during the second year of the

Campaign in each such publication. Should any publication listed in Exhibit B no longer exist,

the CRAs shall replace it with a comparable publication, to the extent reasonably practicable.

b. Radio. The Campaign shall include the following radio component:

i. During each of the second and fourth quarters of the second year of

the Campaign, the CRAs shall run the Educational Content in purchased radio spots for a period

of no fewer than ten (10) weeks on at least ten (10) radio stations in the State of New York,

including at least two (2) Spanish language stations.

ii. Although the CRAs cannot guarantee a specific number of spots,

the CRAs shall make good faith efforts to place radio spots that are reasonably believed to reach

a significant geographic area of the State of New York and a significant audience. The CRAs

shall not be in breach of this provision, provided they run no fewer than five (5) spots per week

for the ten (10) week period during each of the second and fourth quarters of the second year of

the Campaign on at least ten (10) radio stations in the State of New York, including at least two

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(2) Spanish language stations.

c. Television. The Campaign shall include the following television component:

i. During each quarter of the third year of the Campaign, the CRAs shall run

the Educational Content in purchased television spots for no fewer than ten (10) weeks on at

least two (2) English and two (2) Spanish language stations in the State of New York. In

addition, the CRAs shall solicit their industry association, the CDIA, to attempt to place PSAs on

at least two (2) English and two (2) Spanish language television stations in the State of New

York during the third and fourth quarters of the third year of the Campaign.

ii. Although the CRAs cannot guarantee a specific number of paid television

spots, the CRAs shall make good faith efforts to place spots at such times of day and with such

television stations that are reasonably believed to reach a significant geographic area of the State

of New York and a significant audience. The CRAs shall not be in breach of this provision,

provided they run no fewer than ten (10) paid spots per week for a ten (10) week period during

each quarter of the third year of the Campaign on at least two (2) English and two (2) Spanish

language stations in the State of New York.

d. Internet. The Campaign shall include the following internet component:

i. Twice a year during the first, second, and third years of the

Campaign, the CRAs shall jointly host a one-hour online chat designed to interact with and

educate consumers on the topics in Section III.D.1.a.

ii. The online chats shall be promoted in the State of New York,

including promotion through Twitter and on the CRAs’ websites.

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3. NYAG Involvement

The CRAs shall submit the Educational Content to the NYAG prior to publication or

broadcasting. The NYAG shall promptly inform the CRAs of any concerns regarding the

Educational Content.

4. Campaign Costs

All costs related to the Campaign shall be borne by the CRAs.

E. Furnisher Monitoring

1. Working Group

To enhance their respective capabilities for monitoring individual furnishers, the CRAs

shall develop the National Credit Reporting Working Group (“Working Group”), which shall:

(i) catalogue and share best practices for monitoring furnishers on an individual-furnisher level

and on a category-wide and/or industry-wide level; (ii) identify and establish data quality metrics

for monitoring individual furnishers, categories of furnishers, and/or industries of furnishers; and

(iii) share and compare information and reports among the CRAs to identify further actionable

data quality and accuracy initiatives.

2. Composition of the Working Group

The Working Group shall be comprised of internal data experts from each CRA who are

knowledgeable about their respective systems, policies, and procedures relating to furnishers and

data acquisition. As appropriate, individuals from each CRA with expertise in the consumer

dispute process, data quality, matching logic, and other facets of the CRAs’ operations will

participate in Working Group meetings. Counsel for a CRA may also participate in Working

Group meetings.

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3. Frequency of Working Group Meetings

The Working Group shall conduct its first meeting during the first calendar quarter

following the Effective Date and shall continue to meet quarterly for a period of three (3)

calendar years after the Effective Date. Working Group meetings shall be conducted in person

or via teleconference or video conference, but at least one meeting per year shall take place in

person.

4. Functions of the Working Group

a. Coordinate and Review Furnisher Analytics and Metrics

The Working Group shall coordinate the development and review of reports and metrics

that analyze key data related to furnishers, including but not limited to: on an industry basis

(e.g., collections, student loans); on a time-series basis by industry (i.e., a trending analysis that

examines data over an extended time period); and/or in the form of benchmarking reports. These

reports and metrics may include, but are not limited to, the following topics and purposes:

i. Individual-furnisher, category-wide, and industry-wide metrics

related to: (a) the overall number of consumer disputes and/or ratio of consumer disputes to

items reported; (b) furnishers who fail to respond to disputes; and (c) furnishers’ compliance

with their statutory obligations;

ii. Reports developed and trends identified through analysis of data

furnished to the CRAs, including analyses of credit account data regularly furnished to each

CRA (i.e., tradelines), and reports and metrics that focus on rates of consumer complaints,

furnisher disputes and responses, and dispute outcomes;

iii. Reports and metrics focused on furnisher reporting by industry,

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including analyses of the frequency and timeliness of reporting, reports that evidence the proper

use of Metro 2 codes, reports on data rejection rates and reasons for rejecting data submitted by a

furnisher, and reports on other similar statistical data;

iv. Benchmarking reports based on factors such as industry, portfolio

type, and/or portfolio size, in order to compare the data and trends identified in the reports

described above to further review the quality of the data furnished to the CRAs; and

v. Proposed changes to the CRAs’ existing policies and procedures

related to data accuracy and furnisher monitoring based on any areas of concern and/or best

practices identified by the Working Group pursuant to Section III.E.4.b.

b. Identify Data Accuracy Best Practices

The Working Group shall discuss each CRA’s policies and procedures pertaining to data

accuracy and furnishers in order to identify potential best practices. The Working Group’s

discussions may include, but not be limited to, topics addressed in Sections III.A and B above,

including: minimum identification elements on newly opened trade and collection data; uniform

standards regarding the collection of public record data; additional types of consumer disputes

that warrant escalated handling; furnisher credentialing and onboarding; data intake procedures;

data hygiene tools and procedures; furnisher monitoring techniques; reports and trending

analysis tools; policies designed to address fraud and data accuracy risk; and other policies and

procedures designed to enhance data quality. The Working Group shall identify potential best

practices and policies designed to lead to more effective furnisher monitoring and/or enhanced

data quality and accuracy.

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5. Corrective Action Against Certain Furnishers

a. Each CRA shall implement policies to monitor the performance of

individual furnishers and categories of furnishers based on the recommendations of the Working

Group and/or the CRA’s own initiative.

b. Utilizing the metrics established by the Working Group and/or the CRA,

each CRA shall take corrective action, when reasonably necessary, with respect to a furnisher

that fails to comply with its obligations regarding data furnishing and reinvestigating consumer

disputes. Reasonably necessary corrective action may include working with a furnisher to

remediate the root cause of the problem when the furnisher initially fails to meet certain

benchmarks established by the Working Group, suppressing certain of the furnisher’s data during

the remediation process, issuing warnings to furnishers who continue to fail to meet certain

benchmarks despite being retrained by the CRAs with respect to the identified problem, and

refusing to accept certain information from furnishers that repeatedly fail to remediate identified

problems or that demonstrate a disregard for their statutory and contractual obligations based on

the Working Group’s or CRA’s metrics.

IV. CONSUMER COMPLAINTS

To ensure that consumer complaints brought to the attention of the NYAG are handled

promptly, the parties agree on the following protocol. Each CRA shall designate a department or

group within their respective companies to assist the NYAG in addressing consumer complaints.

Each CRA shall provide the NYAG with direct contact information for the designated

department or group, including at least one designated management-level employee’s telephone

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number and e-mail address for direct communications regarding matters that cannot be resolved

by the designated department. The CRA’s designated department or group shall then ensure that

the CRA responds promptly to complaints and shall remain a point of contact for the NYAG for

any subsequent inquiries related to specific complaints.

V. COMPLIANCE

1. Beginning six (6) months from the Effective Date and continuing until six (6)

months after the Completion Date, each CRA shall provide the NYAG with semi-annual

affidavits of compliance (“Affidavits”).

2. The Affidavits shall include the following:

a. A report detailing whether each provision of the Agreement that was

scheduled to have been implemented by the date of the Affidavit’s submission pursuant to the

Implementation Schedule was timely implemented, and if not, the reason that the provision was

not timely implemented;

b. The total number of disputes filed by consumers that resulted in any of the

following outcomes, broken down by total number in each category, for the six-month period

prior to submission of the Affidavit: (i) no response; (ii) verified as reported; (iii) delete; (iv)

delete due to fraud; or (v) modify;

c. If applicable, a description of the implementation of any new policies or

practices or modifications to policies or practices recommended by the Working Group during

the six (6) months preceding submission of the Affidavit;

d. If applicable, a description of the results of any new policies or practices

or the results of any modifications to policies or practices implemented as a result of the

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Working Group’s recommendations (e.g., evidence of a decrease in the number of disputes or in

the number of repeat disputes for particular furnishers or categories of furnishers);

e. A description of any material corrective measures used to address

furnisher failure to adequately comply with obligations regarding data accuracy or consumer

disputes during the six (6) months preceding submission of the Affidavit, which description shall

set forth:

i. The overall number of furnishers for which a CRA took material

corrective action;

ii. The industry groups for the furnishers and number of furnishers

within such industry group; and

iii. A general description of the types of material corrective action

taken by the CRA; and

f. Details concerning the Working Group, including:

i. A current list of Working Group members;

ii. Dates of Working Group meetings occurring during the prior six

months; and

iii. A description of any recommendations made or best practices

issued by the Working Group during the prior six months.

MISCELLANEOUS

1. The NYAG has agreed to the terms of this Agreement based on, among other

things, the representations made to the NYAG by the CRAs and their counsel. To the extent that

any material representations are later found to be inaccurate or misleading, this Agreement is

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voidable by the NYAG in its sole discretion.

2. If the Agreement is voided, the CRAs agree that any statute of limitations or other

time-related defenses applicable to the subject of the Agreement and any claims arising from or

relating thereto are tolled from and after the date of this Agreement. In the event the Agreement

is voided, the CRAs expressly agree and acknowledge that this Agreement shall in no way bar or

otherwise preclude the NYAG from commencing, conducting or prosecuting any investigation,

action or proceeding, however denominated, related to the Agreement, against the CRAs, or

from using in any way any statements, documents or other materials produced or provided by the

CRAs prior to or after the date of this Agreement.

3. No representation, inducement, promise, understanding, condition, or warranty

not set forth in this Agreement has been made to or relied upon by the CRAs in agreeing to this

Agreement.

4. The CRAs represent and warrant, through the signatures below, that the terms and

conditions of this Agreement are duly approved, and execution of this Agreement is duly

authorized. The CRAs shall not take any action or make any statement denying, directly or

indirectly, the propriety of this Agreement or expressing the view that this Agreement is without

factual basis. Nothing in this paragraph affects the CRAs’ (i) testimonial obligations or (ii) right

to take legal or factual positions in defense of litigation or other legal proceedings to which the

NYAG is not a party. This Agreement is not intended for use by any third party in any other

civil or administrative proceeding, court, arbitration, or other tribunal, and is not intended, and

should not be construed, as any concession, as evidence of or an admission of wrongdoing or

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liability by the CRAs. Nothing in this Agreement is intended to create any private rights, cause

of action, third party rights, or remedies for any individual or entity against any of the CRAs or

their subsidiaries.

5. This Agreement and/or the Implementation Schedule may not be modified except

with the consent of the NYAG, which consent shall not be unreasonably withheld. A CRA shall

obtain the consent of the NYAG if the CRA, in good faith, needs to make any material

modifications or other material changes to the scheduled dates established in the Implementation

Schedule, which consent shall not be unreasonably withheld. In addition, a CRA shall obtain the

consent of the NYAG if the CRA, in good faith, determines that any material modifications or

other material changes to the Supporting Dispute Documentation review procedures listed in

Section III.B.8 should be made due to future technological or other innovations that would

reasonably provide consumers with a better experience or more consistent review of their

Supporting Dispute Documentation, which consent shall not be unreasonably withheld.

6. This Agreement may not be amended except by an instrument in writing signed

on behalf of all the parties to this Agreement. However, to the extent a CRA requires to amend

this Agreement in a manner that would not affect any other CRA’s rights or obligations

hereunder, and the NYAG consents to such amendment, this Agreement may be so amended by

an instrument in writing signed on behalf of the NYAG and the affected CRA only, which

amendment shall apply only to the signatories thereto.

7. This Agreement shall be binding on and inure to the benefit of the parties to this

Agreement and their respective successors and assigns, provided that no party, other than the

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NYAG, may assign, delegate, or otherwise transfer any of its rights or obligations under this

Agreement without the prior written consent of the NYAG.

8. It is understood and agreed that this Agreement shall apply to the CRAs, whether

acting through their respective directors, officers, employees, representatives, agents, assigns,

successors, affiliates, subsidiaries or other business person or business entities whose acts,

practices, or policies are directed, formulated, or controlled by the CRAs.

9. In the event that any one or more of the provisions contained in this Agreement

shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such

invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement.

10. To the extent not already provided under this Agreement, the CRAs shall, upon

request by the NYAG, provide all documentation and information necessary for the NYAG to

verify compliance with this Agreement.

11. All notices, reports, requests, and other communications to any party pursuant to

this Agreement shall be in writing and shall be directed as follows:

If to Experian to:

Darryl Gibson, Esq. Group General Counsel Experian Information Solutions, Inc. 475 Anton Blvd. Costa Mesa, CA 92626 If to Equifax to: John J. Kelley, III, Esq. Chief Legal Officer Equifax Information Services LLC 1550 Peachtree Street, N.W. Atlanta, GA 30309

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If to TransUnion to:

John Blenke, Esq. EVP and General Counsel TransUnion LLC 555 W. Adams Street Chicago, IL 60661 If to the NYAG to:

Carolyn Fast, Special Counsel Melissa O’Neill, Assistant Attorney General Office of the New York State Attorney General Bureau of Consumer Frauds and Protection 120 Broadway, 3rd Floor New York, NY 10271

12. Acceptance of this Agreement by the NYAG shall not be deemed approval by the

NYAG of any of the practices or procedures referenced herein, and the CRAs shall make no

representation to the contrary.

13. In the event that the NYAG determines that any of the CRAs has violated this

Agreement, the NYAG shall have the right to enforce the Agreement against that CRA in any

court of competent jurisdiction in New York State.

14. If a court of competent jurisdiction determines that any of the CRAs have

breached this Agreement, that CRA shall pay to the NYAG the cost, if any, of such

determination and of enforcing this Agreement, including without limitation legal fees, expenses,

and court costs.

15. In the event that any of the CRAs enter into an agreement with a federal or state

agency, including but not limited to any state Attorney General’s Office, within 24 months of the

Effective Date, and such agreement includes injunctive relief that provides benefits or

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protections to consumers that are not included in this Agreement, such additional benefits or

protections shall be extended by the CRA(s) to New York consumers.

16. The NYAG finds the relief and agreements contained in this Agreement

appropriate and in the public interest. The NYAG is willing to accept this Agreement in lieu of

commencing a statutory proceeding. This Agreement shall be governed by the laws of the State

of New York without regard to any conflict of laws principles.

17. Nothing contained herein shall be construed as to deprive any person of any

private right under the law.

18. Notwithstanding anything in this Agreement, if compliance with any provision of

this Agreement would render compliance with any existing or future provision of New York or

federal laws or regulations relating to the same subject matter impossible, then compliance with

such provision of state or federal law or regulation shall be deemed compliance with the relevant

provision of this Agreement. The CRAs shall provide written notice to the NYAG within fifteen

(15) days of its determination that compliance with a provision of this Agreement is rendered

impossible by state or federal law or regulation.

19. This Agreement constitutes the entire agreement between the NYAG and the

CRAs and supersedes any prior communication, understanding or agreement, whether written or

oral, concerning the subject matter of this Agreement.

20. This Agreement may be executed in counterparts, each of which shall be deemed

to be an original, but all of which, taken together, shall constitute one and the same agreement.

1

EXHIBIT A

IMPLEMENTATION SCHEDULE The provisions of the Agreement in Section III shall be implemented in the following Phases, per Section II of the Agreement. The descriptions set forth here are summaries of the various initiatives to be implemented by the CRAs. Please refer to the Agreement for the full terms and scope of each initiative summarized here. Phase 1 Initiatives

Section III.A.2 (announce retirement of Metro 1 data reporting format).

Section III.A.4.b (inform furnishers of date of birth reporting requirement for newly opened accounts).

Section III.B.1.a–b (eliminate conditions for accepting disputes).

Section III.B.4.b (evaluate consumer dispute analytics).

Section III.B.6.b (analyze data on consumer disputes available through e-OSCAR).

Section III.B.7.a (implement procedures to identify and process disputes for escalated handling).

Section III.B.8.a (Supporting Dispute Documentation review by CRAs).

Section III.C.2 (Promoting AnnualCreditReport.com on CRAs’ landing webpages)

Section III.D (develop and begin rollout of the PSA Campaign).

Section III.E.1–3 (National Credit Reporting Working Group on furnisher monitoring). Phase 2 Initiatives

Section III.A.1.a–d (various Collection Furnisher initiatives).

Section III.A.3.b. (instruct Collection Furnishers on the use of the Metro 2 comment codes for “paid by insurance” and “being paid by insurance”).

Section III.A.5.a (Illegal Lender identification initiative).

Section III.B.3.a (various initiatives relating to the sharing of, obligations upon receipt of, and reporting of Disputed Deceased Indicators).

2

Section III.B.3.b (various initiatives relating to the sharing of, obligations upon receipt of, and education to consumers regarding Death Notices and other information relating to deceased consumers).

Section III.B.3.c.iii (develop guidelines and procedures for communicating with consumers about mixed files and create educational content about mixed files generally).

Section III.B.5 (provide consumer right to request one additional free annual credit report disclosure during the twelve-month period following a change to the consumer’s file).

Section III.B.6.a (update terms of use agreed to by furnishers using e-OSCAR, as well as the ACDV and AUD certifications made by furnishers through e-OSCAR).

Section III.B.7.d (update CRAs’ websites and AnnualCreditReport.com with educational material regarding disputes that qualify for escalated handling).

Section III.C.1.a (initiatives relating to enhancing the consumer experience on AnnualCreditReport.com).

Section III.C.1.b (various initiatives relating to enhancing CRAs’ websites and AnnualCreditReport.com with educational material for consumers regarding the dispute process).

Section III.E.4.b (Working Group review of CRAs’ policies and procedures pertaining to data accuracy and furnishers in order to identify potential best practices).

Phase 3 Initiatives

Section III.A.1.e (additional Collection Furnisher initiatives).

Section III.A.2 (migrate to Metro 2 data reporting format for all furnishers; no longer accept Metro 1 data reporting format).

Section III.A.3.a, 3.c (medical debt collection initiatives relating to preventing the reporting of and potential suppression of certain medical debt data).

Section III.A.4.a (prohibit furnishers from reporting authorized users without a date of birth for new accounts).

Section III.A.5.b (additional Illegal Lender initiative).

Section III.A.6–7 (establish new standards regarding indicative information and public records).

Section III.B.2 (initiative relating to Repeat Disputes).

3

Section III.B.3.c–c.ii (various initiatives relating to mixed files).

Section III.B.4.a (provide standardized notices following reinvestigation of dispute).

Section III.E.4.a (develop and review reports and metrics analyzing key furnisher data).

Section III.E.5.a–b (implement policies relating to furnisher monitoring).

EXHIBIT B

LIST OF PUBLICATIONS

Publication Name Location El Diario La Prensa NYC New York Post NYC New York Daily News NYC Newsday NYC amNewYork NYC Journal News White Plains Times Herald-Record Middletown Poughkeepsie Journal Poughkeepsie The Buffalo News Buffalo Albany Times Union Albany The Daily Gazette Schenectady Democrat and Chronicle Rochester Post-Standard Syracuse The Ithaca Journal Ithaca Press & Sun Bulletin Binghamton Observer Dispatch Utica Watertown Daily Times Watertown Star-Gazette Elmira The Leader Corning

attorney general of the state of new york bureau of ... · consumers’ credit-worthiness....

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